{"id":3335,"date":"2024-11-30T10:44:45","date_gmt":"2024-11-30T10:44:45","guid":{"rendered":"https:\/\/beadysword.com.ng\/blog\/?p=3335"},"modified":"2024-11-30T10:44:54","modified_gmt":"2024-11-30T10:44:54","slug":"fgs-electricity-subsidy-spend-may-hit-n2-4trn-by-year-end","status":"publish","type":"post","link":"https:\/\/beadysword.com.ng\/blog\/2024\/11\/30\/fgs-electricity-subsidy-spend-may-hit-n2-4trn-by-year-end\/","title":{"rendered":"FG\u2019s Electricity Subsidy Spend May Hit N2.4trn By Year End"},"content":{"rendered":"
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The Nigerian Electricity Regulatory Commission (NERC) says the cumulative electricity subsidy for 2024 may increase to N2.4 trillion.<\/strong><\/p>\n

Yusuf Alli, commissioner of planning, research, and strategy at the NERC, spoke on Thursday at the PricewaterhouseCoopers\u2019 (PwC) annual power and utilities roundtable in Lagos.<\/p>\n

Alli said the subsidy fluctuated due to challenges with foreign exchange and tariff adjustments.<\/p>\n

\u201cAs of November, the subsidy amount stood at N1.9tn, but with current trends, the monthly subsidy for electricity is expected to reach N260bn in December,\u201d he said<\/ins><\/p>\n

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\u201cWhen the action was taken in April to increase tariff for band A, that reduced it by over N100 billion,\u201d he said.<\/p>\n

\u201cBut unfortunately, there has been some level of backsliding in the macroeconomic environment.<\/p>\n

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\u201cSo right now, the best estimate that we have for 2024 is that the cumulative subsidy for the year will be N2.4 trillion.<\/p>\n

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\u201cThe implication is that the federal government, Ministry of Finance, would have to find the money to pay the generating companies because they are the ones right now that are not getting their full money arising from the shortfalls.\u201d<\/p>\n

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In its quarterly report for Q2 2024, the NERC said the federal government\u2019s electricity subsidy obligation stood at N380 billion \u2014 a 40 percent drop from the N633.3 billion incurred in Q1 2024.<\/p>\n

On April 3, the commission approved an increase in electricity tariffs for customers under the Band A classification to reduce the amount the federal government spends on subsidising electricity.<\/p>\n

The agency said customers under the classification, who receive 20 hours of daily power supply, will pay N225 per kilowatt (kW) \u2014 up from N66.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Nigerian Electricity Regulatory Commission (NERC) says the cumulative electricity subsidy for 2024 may increase to N2.4 trillion. Yusuf Alli, commissioner of planning, research, and strategy at the NERC, spoke on Thursday at the...<\/p>\n","protected":false},"author":2,"featured_media":3336,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t